topic I have taken funds from 401K using CARES act in 2020, Paid for 1/3 of taxes in 2021 Tax returns for 2020. My 401k is now close can I deposit it back to IRA its beyond 6k. in Retirement tax questions

I have taken funds from 401K using CARES act in 2020, Paid for 1/3 of taxes in 2021 Tax returns for 2020. My 401k is now close can I deposit it back to IRA its beyond 6k.

karthikchigurupa — Tue, 10 Mar 2026 07:29:24 GMT

Re: I have taken funds from 401K using CARES act in 2020, Paid for 1/3 of taxes in 2021 Tax returns for 2020. My 401k is now close can I deposit it back to IRA its beyond 6k.

dmertz — Fri, 02 Dec 2022 18:45:17 GMT

Yes, a CRD from your 401(k) can be repaid to an IRA. The repayment is not a regular contribution and does not count toward the regular IRA contribution limit. You must tell the IRA custodian that it is a repayment of a CRD and not a regular contribution so that the custodian codes it correctly on Form 5498.

Re: I have taken funds from 401K using CARES act in 2020, Paid for 1/3 of taxes in 2021 Tax retur...

SusanY1 — Mon, 05 Dec 2022 00:24:56 GMT

Yes, you can redeposit these funds into an IRA, but you should use a "Rollover IRA" for this purpose and be sure that the custodian (bank or investment firm, typically) indicates that the funds are repayment of a disaster distribution.

You can find more on this topic, including how to handle the repayment on your tax returns at this related thread: Repayment of CARES withdrawals.

[EDITED December 4, 2022 4:24 PM PST]

Re: I have taken funds from 401K using CARES act in 2020, Paid for 1/3 of taxes in 2021 Tax retur...

dmertz — Fri, 02 Dec 2022 23:31:06 GMT

While you can make the repayment to a Rollover IRA, the repayment of a CRD is not treated as a rollover contribution. Instead of being reported in box 2 of Form 5498 as a rollover contribution, the IRA custodian must instead report in box 14a the amount repaid and in box 14b the code DD. (A CRD is a type of disaster distribution.)

Re: I have taken funds from 401K using CARES act in 2020, Paid for 1/3 of taxes in 2021 Tax retur...

fanfare — Mon, 05 Dec 2022 22:05:39 GMT

My custodian told me there would be no 5498 for a 2022 repayment of "CRD". And I never did got one.

Re: I have taken funds from 401K using CARES act in 2020, Paid for 1/3 of taxes in 2021 Tax retur...

fanfare — Mon, 05 Dec 2022 01:28:38 GMT

Never mind. after thinking about it I expect I will get 5498 in 2023 for 2022.